Effective HR management should create a pleasant and rewarding place to work.

If
employees are treated fairly, grievances will be minimized. Good policies could lead to highly
motivated, effective workers. Unfortunately, problems are likely to occur regardless of how well
the HR policies and practices are designed.
To maintain fair and effective employee relations, every organization needs both a
grievance procedure and a discipline procedure. Both procedures are needed regardless of whether
the employees are represented by a union, or there is no union at all.
Grievance procedures provide a systematic process for hearing and evaluating the
complaints of employees. They tend to be more highly developed in unionized companies than in
nonunionized companies because they are specified in the labor agreement. This procedure
protects the rights of employees and eliminates the need for strikes or slowdowns every time a
disagreement occurs about the labor contract.
Discipline procedures provide a systematic process for handling problem employees. The
goal of a good discipline system is to help employees perform better; but if they fail to respond, a
procedure is needed for firing them as a last resort.
Grievance Defined
Grievance is a disagreement between an employee and the employer on the terms or
conditions of employment. The causes for a grievance may include, but are not limited to,
complaints concerning wages, hours of work, working conditions, performance evaluations, job
assignments, or the interpretation or application of a rule, regulation, or policy.
Unionized firms use a more limited definition in which grievances refer to "any question
by either the employer or the union regarding the interpretation or application of the collective
bargaining agreement or company personnel policies, thus referring only to specific disputes
concerning any violation of the CBA or the labor code."
Causes of Grievances
1. Differing application and interpretation of the collective bargaining agreement (CBA)
2. Perceived unfair treatment of the employee by the supervisor or ineffective or inadequate
supervision
3. Unfair labor practices of the employers
4. Violation by management of the labor agreement or violation of the law concerning the
workers
5. Grievances inspired by the union leaders
6. Lack of a clear-cut company labor
Grievance Procedures in Unionized Firms as Provided in their CBA
The procedure prescribes the manner by which disputes, arising out of complaint presented
by an employee against the company or another corker v vice versa), should be addressed. Simply
put, the grievance procedure sets o the guidelines by which the proceedings are to be conducted.
It gives the union member the opportunity to explain his/her side without being confrontational
argumentative. The same principle works for the employer. Due process, they key to its success,
is also achieved this way. in handling
Based on the union's actual experience grievance procedure or dispute settlement process
is really more than the common judicial process. The parties in such process need not engage
lawyers or contend with the taxing legal procedures required by labor courts, filing of position
papers, and other pleadings coupled with the formal submission of evidences let alone the time
required by the labor arbiter to study, evaluate and decide on the case. On the other hand, the
judicial process and the long track it may follow goes on to the Commission level (at the National
Labor Relation Commission), then to the Court of Appeals and ultimately, to the Supreme Court.
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 The essence of the grievance procedure is to provide means by which employee can express
complaints without jeopardizing their jobs, and by which they obtain a fair hearing through
progressively higher levels of management.
The grievance procedure is an appeal procedure and is a "must" provision every collective
agreement. It is that part of the agreement which provides for peaceful way of settling differences
and misunderstanding between the parties,
In unionized firms, the full grievance procedure generally consists of these four steps:
1. Submitting the grievance to the immediate supervisor-In a union environment, a typical
grievance procedure begins with an employee presenting a problem to his or her immediate
supervisor within a certain time period after the offending event has occurred.
2. Submitting the grievance to the employee's union representative- At this point, a union
representative enters the negotiations on behalf of the employee.
3. Appealing the grievance to top management representative - the situation is still not
resolved, the grievance continues up the chain d command to the plant manager and the
president of the local union. If the labor union fails to follow the procedures at any point,
the contract usually specifies that it must drop the grievance.
4. Submitting the grievance to arbitration - This is done if a satisfactory solution to both
parties is not reached by the above procedure. This is the final step in the grievance process
and both parties agree beforehand to abe by the arbitrator's decision. As provided in the
Labor Code, all grievance that remain unresolved after exhausting all the internal
procedures sha automatically be referred to arbitration.

A potential intermediate step involves presenting the grievance to a mediator, whose job is
to help the parties solve their own differences before they reach the formal arbitration phase.
Mediation is usually less time consuming and expensive than arbitration. In addition, the mediator
may be able to teach the two parties dispute resolution skills that may be helpful in solving future
problems.
Two Periods in the Grievance Procedure
1. Period of persuasion-takes place from the first step to the last step immediately prior to
arbitration, where labor and management, with the use of arguments and evidences,
persuade one another to give in to one's position or agree to a compromise.
2. Period of arbitration- begins when the act of persuasion exhaustively used and no
settlement has been reached.
Handling Employee Grievances at the Level of the Supervisor

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 Most grievances are resolved at the first step of the process by competent supervisors who
are willing to listen and act fairly. To reduce the number of grievances that are appealed,
supervisors are encouraged to follow these recommendations:
1. Receive and treat all complaints seriously and give the employee a full hearing. The way
supervisors receive a complaint or grievance is important because this may have a lot to do
with the ease or difficulty in settling the problem. It is also important to assure the grievant
or complainant of prompt action and when he/she can expect an answer. Determine if there
i a genuine grievance and if there is, whether the same is justified or not.

Primer on Grievance Machinery and Voluntary Arbitration, http://ncmb.ph/VAP/Publications/

Voluntary Arbitration/PrimerGMVA.htm
2. Get the facts by investigating and handling each case as though it may every angle of
the complaint, checking the provisions in the existing CE eventually result in arbitration.
This can be done by means of checking the company policy, and examining the employee's
record. Thus, there from the HRD if necessary. Collect evidence and determine if there
were a need to examine the labor agreement carefully and obtain clarification witnesses.
Most grievances are contract violations and if the supervisor does not know the contract or
the company personnel policies, he/she will not recognize a violation when he/she sees one.
Be sure to investigate the five W’s.
a. Who-refers to that part of the form that clearly identifies the y with the grievance.
b. When refers to the time element. Often, information regarding t than one date is
needed to properly complete the data: the date o grievance actually happened; the
date on which the grievance was f which the grievance is officially written; the time
and date on which the supervisor gave his/her decision. It is particularly important
on matten in the first step with the foreman: and the date on which the foreman
involving back pay that all dates be clearly stated.
c. Where-refers to the exact place where the grievance took place-the department
aisle or inside the conference room.
d. Why-refers to the reason why the complaint is considered a grievance. This is
the heart of the grievance and should be written under t section that carries the
heading "Nature of Grievance." It is important to remember that it is possible to
have a legitimate grievance without being able to point to a violation of a specific
clause of the contract.
e. What-refers to what should be done about the grievance the settlement desired.
"Settlement Desired." In those cases, it is customary for the uni desired. Many
grievance forms do not have a separate section headed steward to list his/her
settlement request at the end of the section is extremely important that this be done
since the arbitrator will often base his/her award solely on the original request.

3. Carefully examine all the evidence before making a decision. Avoid lengthy delays. When all
the information is in, make a decision and communicate it. Make correction if the employee or
the company is wrong. Whatever is the decision, it should be clearly explained to the employee
concerned.
4. Follow up to make sure the plan of action is properly carried out by mean of correcting
conditions which could result in a similar grievance happening again.

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Responsibility of the Union Steward and the Supervisor in Handling Grievances
Union stewards and supervisors must see to it that grievances are presented only when
there is a real basis for complaint or there is a need for decision stewards are convinced that the
worker does not have a real case, it is better to tell him/her right away.
Ibid.
In borderline cases where it is felt that the worker has considerable justice on bis ber side,
he/she should be told of the uncertainty of the decision before the case psed to get a definite ruling
through the grievance procedure."
The supervisors, on the other hand, should be trained in the human relations pects of their
jobs. They should be ready to listen first before they start debating with the employee. They should
note what is being said rather than how the matter is said. This way, gripes are separated from
grievances or gripes are prevented from becoming grievances.
Both stewards and supervisors should make every effort to settle the grievance at the lowest
step. Management has a legal duty to provide all information that will explain the specific details
and basis of its action to enable the shop steward to determine whether to proceed with the
grievance or not.
Processing of Grievance
Perfecto Fernandez suggests the following approach in the processing and adjustment of
grievances:
"Processing of grievances involves a joint effort on
1. identification of the issue or issues involved;
2. developing its factual basis or background;
3. determining the contract provisions involved;
4. evaluating the merits of the grievance in the light of the factual background and applicable
rules; and
5. working out a fair and just settlement."
Two Kinds of Arbitration
1. Voluntary Arbitration - the parties agree to submit themselves to arbitration.
2. Compulsory Arbitration-parties are compelled or ordered to submit themselves to
arbitration in case there is deadlock during collective bargaining.
Scope of Voluntary Arbitration
Types of Labor Disputes that may be Submitted to Voluntary Arbitration
Under Article 261 of the Labor Code, as amended, the following disputes are subject to the
original and exclusive jurisdiction of voluntary arbitrator or panel of voluntary arbitrators:

1. Unresolved grievances arising from CBA interpretation or implementation. These include

CBA violations which are not gross in character, meaning, flagrant and/or malicious refusal
to comply with the economic provisions of the CBA.
2. Unresolved grievances arising from personnel policy enforcement and interpretation
including disciplinary cases. These disputes are often referred to as "rights disputes."
3. Under Article 262 of the same Code, all other labor disputes including unfair labor
practices and bargaining deadlocks may also be submitted voluntary arbitration upon
agreement of the parties. Bargaining deadlocks are often referred to as "interest disputes."

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 4. Article 263 likewise allows the parties upon agreement, to submit even the so-called
"national interest casen" to voluntary arbitration, before or in any stage of the compulsory
arbitration process prior to the submission of the resolution.
Republic Act Nos. 6727 and 6971 enacted on 7 July 1989 and 22 November 1 respectively,
also expanded the jurisdiction of voluntary arbitration to include
1. all unresolved wage distortion cases as a result of the application of wa orders issued by
any Regional Tripartite Wages and Productivity Board establishments where there is
collective bargaining agreement or recognize labor union; and
2. all unresolved disputes, grievances, or other matters arising interpretation and
implementation of a productivity incentives program the which remains unresolved within
twenty (20) calendar days from the time of the submission to labor-management committee.
Authority of an Arbitrator
A voluntary arbitrator is defined as any person accredited by the NCMB, anyone named or
designated in the CBA by the parties, to act as their voluntary arbitrator.
Articles 261-262 of the Labor Code provide pertinent information about the jurisdiction of
voluntary arbitrators, procedures to be followed, and costs arbitration.
1. General authority to investigate and hear the case upon notice of the parties and to render
an award based on the contract and record of the case;
2. Incidental authority to perform all acts necessary to an adequate discharge of his/her duties
and responsibilities like setting and conduct of hearing attendance of witnesses and proof
documents and other evidences, fac finding and other modes of discovery, reopening of
hearing, etc.;
3. Special power in aid of his/her general contractual authority like the authority to determine
arbitrability of any particular dispute and to modify any provision of existing agreement
upon which a proposed change i submitted for arbitration.
Grounds to Challenge Voluntary Arbitrator's Decision
1. Lack of jurisdiction
2. Grave abuse of discretion
3. Violation of due process
4. Denial of substantive justice
5. Erroneous interpretation of the law
Grievance Procedures in Nonunionized Firms
A company without any union must formulate a grievance procedure for the guidance of
its supervisors and employees. The different steps in the grievance procedure usually involve the
following:
1. Presentation of employee problem/s to the supervisor who is expected to settle the problem
within the specified period
2. If not satisfied, the employee can elevate the complaint to the next higher level to resolve
the grievance.
3. The problem or case may be taken to arbitration for final decision if no satisfactory solution
has been reached by the above procedures.
Procedures in the handling of grievances vary among companies. Some non- unionized
firms have established grievance committees, members of which are either appointed by top
management or elected by the employees. Such committees the evidence and issue a judgment. In
some cases, the committee makes a recommendation to the president, rather than making a binding
decision on its hear

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 Another way used by nonunionized firms in handling grievance is the use of grievance
appeal procedure. It allows employees to submit grievances to successively higher levels in the
organization where the aggrieved employee is represented by an attorney, a peer, or a member of
the personnel office. The hearing is normally conducted by a neutral company executive, who
hears the evidence and makes a judgment.

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